Unretirement Project

Retirement Redefined

Entrepreneurship and Retirement: Your Next Adventure

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adventure in entrepreneurship is waiting, build yours

I’ve mentioned before how Keith and I schedule time every year to talk about our life. We discuss our business, personal stuff, and finances. One of the reasons that we started doing this is because we own a company, ITM Group. We thought it was important to talk about what our retirement would look like as entrepreneurs.

Freelancing, contracting, consulting or entrepreneurship…whatever you want to call it, is far more popular today than it was almost 20 years ago when we started our company. Many individuals have side hustles in addition to regular full-time or part-time jobs. Which is why it’s so important to think about retirement (and unretirement) in the context of both regular work and freelance work. Because the transition could be different. 

That’s not to say that the transition would be bad or difficult. Frankly, having a side gig while transitioning to retirement could be fantastic. It could offer a huge about of flexibility while at the same time provide some financial security.

In the book, “Your Next Adventure: Planning for Life After the Sale of Your Business”, the authors take the time to talk about five elements to consider when you have a business and you’re planning entrepreneurship in retirement. And as a side note: if you’re saying to yourself “I’m not really a business owner. I just do some speaking on the side. Make a few bucks each year.” Let me tell you – you’re a business. And you need to think about how you will manage that freelancing work during your unretirement journey. Here are the five elements to consider:

  1. Your social circles. When you own your own business or you have a side gig, you spend time networking and building relationships. At the point you start transitioning away from work, your social circles are going to change. Maybe not completely, but they will change. Are you ready to transition those friendships and build new ones? 
  1. Your family. Making the decision to work less, sell the business, or transition to doing different work is one that is best discussed with family and close friends. Especially if you have family members or really close friends who help out in the business. Keeping them out of the loop could create some unfortunate surprises.
  1. Your purpose. As a consultant, I spend a lot of time working. And I’m okay with that. But I’ve always been a person who likes a full plate. I honestly have no clue how I would spend my time if I was a full-time retiree. And it scares me a little. At some point, I will need to figure out how to provide purpose without owning a business. 
  1. Your wellbeing. A contributing factor to entrepreneurship is being physically and emotionally well. There are often long hours and sometimes sleepless nights. The last thing that anyone wants is for our failing health to drive our retirement plans. Finding time to take care of ourselves is important. 
  1. Your finances. Last and certainly not least, we have to think about our financial position. When you work on your own, there’s no pension plan. You have to finance your own retirement. Individuals will want to start planning for how their finances will be changing as the nature of their work changes. 

I think these five elements are great topics to keep in mind as you’re planning your transition toward retirement. Even if you don’t own a business or have a side hustle. But of course, we’re talking about entrepreneurship today. 

Even though the book didn’t mention it, that was one of the big takeaways for me. The things we need to consider for our transition to retirement are very similar regardless of our employment status.

Image captured by Sharlyn Lauby while exploring the streets of Chicago, IL

Can Remote Work Be a Way to Phase Into Retirement?

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Right now, older workers are trying to make some decisions about their future careers and asking a number of important questions. Can I continue to work onsite? Maybe it’s time to retire? Or should I think about transitioning to an encore career? These are all very valid. There’s one other question to consider: Is it possible that remote work might help me achieve my retirement goals?

I recently listened to The Retirement Wisdom podcast, “Can Working Remotely Beat Ageism?”. The guest for this episode was Kerry Hannon, author of the book “Great Pajama Jobs: Your Complete Guide to Working from Home”. I will admit that the title of the podcast gave me a bit of discomfort. As a human resources professional, I hate the fact that ageism exists. But the realist in me understands that it does. And sadly, that it’s not going away overnight.

In the podcast, Hannon says that one of the biggest benefits to working from home is beating ageism. For organizations and individuals. Organizations can have older professionals work remotely and not worry about whether that person fits in with the younger members of the team. Older workers can benefit from being evaluated on their performance results and not how they look or act. 

Again, let me say that I hate, hate, hate ageism. And I particularly hate that Hannon’s remarks have some truth in them. But instead of thinking about remote work as a way to beat ageism, is there a way to think of remote work as part of a phased retirement strategy? Organizations benefit because they are able to keep skilled workers longer. Older workers can benefit by being able to still contribute while (possibly) downsizing to their forever home, commute less so they can fulfill caregiving responsibilities, and continue to save for their financial future.   

But working remotely doesn’t mean easier work. If you’re intrigued by the idea of using remote work as part of your phased retirement strategy, here are a few things to consider:

Do you want to be an employee or a freelancer? One of the first things you have to decide is how you want to pursue remote work. If you’re working for an organization that allows working from home, then great – you could be set. And if you don’t or you’re currently looking for a new job, do you want to make remote work one of your job must-haves? 

Do you have enough workspace? I mentioned earlier that part of your retirement strategy might be moving to a smaller home. If you’re planning to work from home, do you have the space to do it? In our last home, Keith worked in the dining room. With our new house, he has his own space and that’s important. 

Can you setup your workspace with equipment and technology? Once you have a designated workspace, you’ll need to think about what it takes to be productive. When we work in an office, we take for granted that we will have a desk, chair, and computer equipment. With high-speed internet. Getting the remote work office setup you want could involve spending some of your own money. 

Are your skills current? I believe working from home involves some different skills. A couple that immediately come to mind are technology and time management. You’ll want to take an inventory of your skills and decide if there are any you want to update or add. And you’ll want to find ways to gain those skills while working from home. If you’re accustomed to taking a class at your worksite, now you might read a book or take an online program. 

Are you mentally and emotionally ready? I’ve worked from home for over a decade. Socializing is different. You don’t have people to collaborate with all the time. There are distractions and temptations all the time. Some of them are fun (like cute panda videos) and then there’s doomscrolling. You have to figure out how to not snack all day and when you’re going to exercise. All of this contributes to the work from home experience.

Regardless of what’s going on with the pandemic, remote work has been increasing in popularity for quite some time. Is it possible to take advantage of a growing trend and make it a part of your retirement strategy? Possibly, but it takes planning so you’re ready when the opportunity presents itself. 

Estate Planning: Remember Your Digital Life

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artwork surreal facial features representing digital life

We recently wrote about estate planning, discussing what an estate is and our important takeaways from the planning process. If you are new to estate planning or want a refresher on some of the key aspects, be sure to check it out. We definitely had some eye-opening moments and many others that required some serious and informed discussion.

I mentioned previously that we are working with an attorney to create our estate documents. One of the things that struck me when reading the drafts was the volume of legal wording that covers your digital life. You know, Facebook and Twitter accounts, registered web addresses, and even just your Amazon account to name a few. And what about your Apple ID and password managers?

The point is, most of us can readily think of bank accounts, investments, and insurance when estate planning. But we tend to overlook who should be responsible for our digital streaming accounts when we can no longer Netflix and chill. Take a moment to think of the things you send to cloud storage and you will see why planning for your digital estate is just as important as who gets your home or car when you’re gone.

Good news – just about every web-based operation has already considered this and address it in their FAQ, help section or forums. In fact, many digital suppliers even include ownership information in their end user license agreements (EULA) or Terms of Service (TOS). You have carefully read all those, right?

It shouldn’t be a surprise that entire industries have cropped up around digital estate planning. Companies like AfterVault, Clocr and Everplans offer one-stop estate planning for your digital assets. Most of these are fee-based services which can help you sort through your digital life and document your plans in one place. Keep in mind that this will really be a separate place, different from where you document the rest of your worldly goods.

Which brings me back to our original estate planning process. We ultimately wanted a single place where we could document all of our financial, physical and digital holdings and plan for them when we’re gone. And we wanted to make sure all of that aligned with state and federal laws so that our heirs weren’t burdened with probate dispositions. For us, that meant working with an attorney who knew all about these things.

Digital estate planning has become so important that AARP wrote about it last year. The article is a great place to start to plan for after your digital life because they include a very helpful do and don’t section for crafting your digital estate plan. From there, you can decide if a digital vault is a good option or maybe research the pros and cons of online wills on Consumer Reports.

If you choose to look for an estate attorney, check out this Investopedia article with 10 questions to ask before engaging their services. They also include a few questions you should ask yourself after you have an initial conversation. Estate planning can be legally complex and emotionally challenging for you and your loved ones. Put in a little time researching your options and remember to include your digital life. Making informed decisions now will lead to peace of mind.

What We Are UP To – Productivity Edition

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wall art do you have what it takes for productivity

One of the biggest challenges I faced when I initially started working from home was productivity. When you’re in the comfort of your own home, it’s easy to get distracted and before you know it, you’re looking at an article about a guy who edited Disney characters into his photos. Over time, I’ve learned that integrating some fun distractions into my workday allows me to enjoy my time and still be productive. This month we managed to do just that: get a few important things done while enjoying ourselves. 

Watching | Ant-Man & Ant-Man and the Wasp

> Sometimes the key to productivity is allowing yourself a little downtime. We found ourselves faced with that earlier this month and decided to rewatch these Marvel movies. And we’re glad we did. We had forgotten how good Paul Rudd and Evangeline Lilly are together. 

Reading | The Flip Side

> While I have my own political opinions, it’s important to me to understand what others might be thinking. The Flip Side is a FREE daily email that presents both the left and right viewpoints to the top news stories. What I like about this site is that it doesn’t tell you one side is right or wrong. It curates both views and presents them side by side for you to decide. They also explain their curation methodology so you can determine if it meets your standard. 

Remembering | Estate Planning

> We haven’t forgotten about this project. Keith recently wrote an article about our estate planning takeaways so far as we update our wills and health care directives. Let me add a 4th takeaway to his list: it takes time. When it comes to budgeting your resources, keep in mind that even updating an existing will does take time. 

Working On | Cleaning up digital photos

> One of the things I love about my iPhone is that I can take a picture whenever I want. The downside to this is that I quickly accumulate a lot of pictures! So, I came up with a plan to organize them. My productivity trick is to schedule an hour a day for a few days and before I knew it…photos organized, and project completed. 

Feeling | Ready for some cooler weather

> I’m probably not alone in thinking it would be nice for some cooler temperatures right now. While I love sunshine and warmer weather, there’s a point where I’m just, “…on to autumn, please”. I know this year will be tough, given that we’re still trying to practice social distancing but I’m looking forward to wearing sweaters and soup season.  

Planning | Flu Shots

> We always get a flu shot. I realize it doesn’t protect us 100% but in my book that’s better than 0%. And I find that if I do catch something, it doesn’t seem to stay with me very long. I’m planning to have a very productive fourth quarter and staying healthy is a necessary part of that plan. 

Loving | Jot

> When I work from home (which is all the time these days), I like to enjoy a small cold brew in the afternoons. Helps with my afternoon productivity! I’ve been trying all sorts of cold brew concentrates and recently found Jot Coffee. It comes with a tablespoon for you to measure the perfect amount. Then just add water. BTW – you can turn it into a pumpkin spice cold brew with just a little bit of Coffee Mate pumpkin spice creamer. 

Geeking | Peloton Update

> I mentioned last month that we got a Peloton and I thought that I would provide a quick update. We’re both really liking it. We were unsure about the whole notion of “biking in the house” thing but there are hundreds of classes to choose from. We can always find something to fit the mood we’re in. And the most important part? We are regularly getting exercise, which helps with our productivity!

What’s UP with you?

Image captured by Sharlyn Lauby while exploring the streets of Anaheim, CA

Why Voting Matters – #Election2020

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wall art about voting saying just do it

I’d like to think that everyone knows there’s an election coming up in the United States. And like all elections, the outcomes are important. Some might argue that this year is even more important. I’m not going to get into that today except to say that even if you vote regularly, I hope you will take the time to finish reading today’s post.

I was a political science major in college, so I like reading and staying up on politics and the news. Which I will admit can be a bit challenging at times. A few months ago, Keith bought me a book titled “OMG WTF Does the Constitution Actually Say?” by Ben Sheehan. Whether or not you’ve read the Constitution, this is an educational and fun read. It contains both the actual text as well as a casual interpretation. I hadn’t read the Constitution in a long time and it was a good refresher. 

Shortly after finishing Sheehan’s book, I heard about another book…this one about voting. Kim Wehle is a professor of law and legal expert. She wrote the book “What You Need to Know About Voting and Why”. Needless to say, I had to get a copy.

While I’ve been voting for a long time, I really enjoyed this book for a few reasons. It’s a book that talks about both the mechanics and complexities of voting. The book delves into whether or not we have a “right” to vote, how to qualify to vote, and how voting impacts government. I’ve never questioned my ability to vote ever nor have I ever had anyone question my ability to cast a vote. (Yes, my white privilege is showing.) That’s not the case for everyone and this book does a good job of explaining how voter suppression has happened over time and still exists today. It also talks about money in elections and if you ever wanted to know the difference between individual contributions, political action committees (aka PACs), and Super PACs…this book will clarify it for you.

The book was also helpful in sharing how older Americans who need assistance can have a caregiver help them vote and how individuals with disabilities can make sure they’re able to vote with accommodations. Finally, the book offers suggestions about what to do if for whatever reason you’re turned away from a voting precinct (and it could be because of what you’re wearing – and, yes, they can do so legally). 

Voting is important. Our votes elect individuals who create laws that impact our personal and professional lives. I’m not just talking about major pieces of legislation like the Americans with Disabilities Act (ADA) or the Family and Medical Leave Act (FMLA). Right now, an elected school board official is deciding whether or not our kids or grandkids should go back to school in person or online. That’s pretty darn important. 

I’m not trying to give you the hard sell on buying this book. I did think it’s really good and it will have a permanent spot on my bookshelf (next to Sheehan’s book about the Constitution). That being said, there is one quote from the book that I want to share.

“As far back as 1886, the Supreme Court has repeatedly declared that the right to vote is ‘fundamental’ because it is ‘preservative of all rights.’ Without the right to vote, individuals can’t hold government officials accountable for breaking other laws.” 

Wehle suggests thinking about our ability to vote as an accountability tool. Without it, government officials could feel – and act – as if they’re above the law. 

A recent AARP study showed that Americans 50 years of age and older would be the world’s third-largest economy if they were counted as their own country. You can imagine the economic impact of this demographic and the power they have in the voting booth. I’m not here to tell you how to vote. But I do hope you will take the time to learn the voting laws in your state, get educated on the issues, and make a plan to go vote. What happens on November 3, 2020 will have a long-term impact on us as individuals as well as our plans for retirement.

Image captured by Sharlyn Lauby while exploring the streets of Gainesville, FL

Estate Planning: 3 Important Takeaways

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let's have a conversation about estate planning nothing is accomplished alone

In our last “What We’re UP To” from a few weeks ago, we mentioned that we’re updating our wills and health care directives. We didn’t expect anything out of the ordinary but surprisingly, there are a lot of moving parts in most estates than you might realize. So, we wanted to share some of our findings with you. To get us started with a conversation about estate planning, let’s start with a definition. Investopedia defines an estate as:

Everything comprising the net worth of an individual, including all land and real estate, possessions, financial securities, cash, and other assets that the individual owns or has a controlling interest in.

According to that definition, we all have an estate to some degree. That’s what an estate is, but there are basically three important documents that help spell out how you want your wishes carried out when you are no longer capable of doing so:

  1. A will
  2. Durable power of attorney for financial matters
  3. Health care power of attorney

As I mentioned, we’re in the process of updating these documents right now. Even though we’ve been through this process before, we’re realizing that things can change over time and wanted to share our takeaways.

Takeaway No. 1 – Your Estate Plan Should Not Be “Set It and Forget It”

Years ago, we did like most people and, with the help of an attorney, created a simple will that was signed and perfectly legal. Then, we immediately placed it in a safe deposit box for 15 – 20 years. The thing is, life has a habit of changing over time and you will want your will to keep up. I would still recommend a safe and secure place to store your official will. But, keep an electronic copy and schedule a regular review every 6 – 12 months and make changes as needed.

I mentioned that we created our original wills through an attorney, and we are doing that again now. Which leads us to takeaway number two.

Takeaway No. 2 – Doing Everything Yourself to Save Attorney Costs May Not Work Very Well 

Yes, you can do that, and it may be just fine. Or, it may not. I’m not an attorney or a certified estate planner so the best advice I can give is this – know if and when to engage an attorney. That might depend on how involved your estate is or how complicated local and state laws are for your estate plan. Just don’t make assumptions that could result in costly headaches for your loved ones.

Speaking of assumptions, the worst assumption you can make brings us to the last takeaway.

Takeaway No. 3 – No, Everyone Does Not Have to Carry Out Your Final Wishes

We found out pretty quickly that you should have a Plan A, Plan B, and at least a Plan C when it comes to estate planning. It turns out that different states have different laws regarding things like taxes and executors. And if your will doesn’t follow the laws for your state, chances are the estate will be disposed by probate court. That could mean additional costly headaches for heirs and family.

Hopefully this article doesn’t seem full of doom and gloom. On the contrary, think of this as caring for those you love when you are no longer able to do so. Yes, it takes planning and dealing with a few decisions that could be a little uncomfortable. That helps avoid pitfalls and provide some peace of mind for everyone. 

5 Ways We Can Bridge Our Retirement Gap

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wall art hands reaching toward each other implying a retirement gap

I ran across an interesting TEDx video on the Center for Retirement Research’s Squared Away Blog. Kevin Bracker, a finance professor at Pittsburg state university in Kansas was talking about “The Retirement Gap”. While the video is from 2019, it does have some really good takeaways for retirement planning. 

Statistically, we know that people are living longer. The challenge is that we’re not financially preparing to live longer. The financial shortfall between how much we need for retirement and how much we have has been labeled “the retirement gap”. 

The retirement gap is global and it’s growing, especially in the United States. So why do we have a retirement gap? There are two primary reasons. First, we don’t save enough. There are people close to retirement who do not have enough saved. Bracker says 40% of the population doesn’t have a retirement account and the majority of individuals do not have enough in savings to last them a year. Second, Social Security, which is supposed to be our retirement safety net, doesn’t have enough funding. 

Whether you believe Social Security is funded enough is a topic for another day. The bottom-line is that individuals need to prepare for retirement. Social Security wasn’t designed to cover 100% of our retirement expenses. Here are five things that could help individuals bridge their retirement gap:

  1. Save more. I realize this is very difficult to do in general. Even more so when people are facing unemployment or taking a job that pays less than the last job. Toughness aside, are there ways we can set a little bit aside? I’ve mentioned before that we have monthly budget meetings and ask ourselves, “Is there something we can cut from our regular expenses?” Sometimes we amaze ourselves with what we can live without. 
  1. Understand the tax code. I’m not saying don’t pay your fair share. But there are ways to legitimately reduce your tax burden. One thing I immediately think about are 401(k) plans where you can save pre-tax. According to the Investment Company Institute, 50% of all employees have access to a 401(k) plan. And over half of those plans include an employer match. As a HR professional, I’m amazed when people don’t take advantage of this benefit. It’s a way to automatically save, pre-tax, and get a savings match from your employer.  
  1. Become financially literate. In addition to taking advantage of the savings opportunities from your employer, it’s possible to invest on your own. I think it’s important if you’re going to invest to understand key financial terms. For example, knowing how inflation impacts the market. Also, individuals should know how to read an organization’s financials to determine whether or not to invest in them.   
  1. Think about professional help. Most of us are not full-time market fund managers. At some point, we might want to consider the services of a financial advisor. Keep in mind these services are not free. Individuals should know how to select the services of a financial advisor and what their fee structures are. A financial advisor can be a huge benefit but it’s important to have trust in their abilities. 
  1. Play the long game. It can be frustrating to save and not see immediate results. Or not see big results. Those small increments can and will add up if we play the long game. I’m reminded of the saying, “If it seems too good to be true, it probably is.” It definitely applies here. Retirement planning happens over time. In small increments. It happens when we’re patient. 

Toward the end of the retirement gap video, Bracker talks about creating some systemic changes like “opt out” 401(k) plans versus “opt in” and automatic savings increases but I think most of us aren’t in a position to implement those changes. The five actions above are things we can do now. 

 I know for some people these financial strategies aren’t anything new. It is a good reminder to stay focused and look for opportunities to do more. After all, we want to enjoy those extra years ahead.

Image captured by Sharlyn Lauby while exploring the streets of Fort Lauderdale, FL